Build America Bonds were created under Section 1531 of Title I of Division B under The American Recovery and Investment act in Feb of 2009 to help ease the financial crisis.
Basically bonds that carry special tax credits to help states and municipalities lower their borrowing costs. This is obviously so they can hire more people.
For all intents and purposes this is a "stimulus" program. The peculiar thing is that Obama is saying the economy is in recovery so do we need this stimulus? This would be akin to your parents being in the hospital "recovering" from a heart attack, and the doctor telling you the parents are getting better but we are going to defibrillate them because it's a good idea.
This is in conjunction with Ben saying 0% rates to 2014.
The following is a chart of MUB (iShares S&P National Municipal):
In simple words the higher this goes the lower the yields (borrowing costs) for municipalities is. So what the fuck is going here?
The government is obviously lying (the economy is not getting better, the BLS numbers are faked) and more stimulus is needed.
In other news the de facto interest rate tool the market has adopted is pegged up in the $100 p/b range which is the last thing the economy needs to recover